De La Cruz Delivers Remarks at Hearing to Examine How Mandates Like ESG Distort Markets and Drive-Up Costs for Insurance and Housing

Washington – RealEstateRama – The House Financial Services Subcommittee on Housing and Insurance is holding a hearing entitled “How Mandates Like ESG Distort Markets and Drive Up Costs for Insurance and Housing.”

Watch Vice Chair Monica De La Cruz’s (TX-15) opening remarks here.

Read Vice Chair De La Cruz’s opening remarks as prepared for delivery:

“The Subcommittee has convened today for a hearing entitled ‘How Mandates Like ESG Distort Markets and Drive Up Costs for Insurance and Housing.’

“This hearing is part of the Committee’s continuing work this month to investigate the far-reaching impacts of a pernicious new trend in the financial services world – forced government ESG mandates.

“For those who are not familiar with it, ESG is the latest progressive buzzword for ‘Environmental, Social, Governance’ factors.

“ESG is a form of virtue signaling where companies can proclaim how enlightened they are based on their environmental, social, or corporate governance actions, even if they had to ignore their fiduciary duty to their shareholders or decrease the value of their goods and services to consumers.

“Those that give in to the ESG movement think that it will make their company more popular with progressive agitators.

“Those that don’t give in get pilloried and protested for having the audacity to focus their business on their business.

“Essentially, ESG is in many cases a modern shakedown tool brought to you by today’s cancel culture.

“Now some might say, what’s wrong with a company becoming more involved in environmental, social, or corporate governance issues and telling their customers about its’ values?

“The problem comes in when ESG is not being offered as a choice, but as a mandate.

“ESG mandates, like so many other government mandates before it, are always offered up as harmless tweaks on the path towards social enlightenment, free from cost or ill-intent, that will make markets work better.

“Of course the reality is the exact opposite – mandates like ESG distort markets, drive up the cost of products, reduce consumer options, create scarcity, and misalign investment capital.

“Made up metrics, called ‘ESG scorecards,’ are created to determine which companies are in the good graces of left-wing activists. These modern-day social credit systems drive a wedge within open markets by directing investments to companies that satisfy progressive’s demands. Your company’s access to capital should not be dependent on being more woke than your competitor. The far left shouldn’t be able to cancel your business if you don’t comply.

“ESG scores and mandates create a social credit system that makes life harder for American consumers, businesses, and retirees with little or no discernable benefits.

“So today’s hearing will explore the impact of the growing ESG movement on two different industries, insurance and housing, and what that means for consumers.

“Because ultimately, that’s the job of government regulators – to protect consumers from harm, from collusion, and from unfair pricing.”

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